CHAPTER TWO

COMPETITIVE BATTLES

How to Size Up Competitors

When will companies realize the full potential of their innovations and radically change an industry? How can we assess a company’s strengths? How can we observe a company’s weaknesses? Which of these strengths and weaknesses influence competitive battles? What separates circumstances in which it is prudent to bet on an incumbent versus circumstances in which entrants should have the upper hand? What powers the process of disruption?

The second part of our analytical process shows how to use the theories of innovation to make informed decisions about competitive battles. Taking the tale of the tape and looking for the company with the sword and the shield allow us to answer the competitive ...

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